Personal insolvency

How our Accountants can help you!

• Our support areas
  • Comprehensive support network on all types of personal insolvency options, including bankruptcy, IVAs, and Debt Relief Order
  • Ongoing support and guidance throughout the entire process
• What is the difference between Bankruptcy, IVAs, and Debt Relief Orders?

  Bankruptcy, IVAs, and Debt Relief Orders are all forms of personal insolvency in the UK, but they are each designed to address different types of financial situations and have distinct eligibility requirements and consequences.

  • Bankruptcy is a legal process that allows individuals who are unable to pay their debts to have those debts discharged by a court. Once an individual is declared bankrupt, their assets are sold to repay creditors, and any remaining unsecured debts are written off. However, bankruptcy can have serious consequences, such as restrictions on obtaining credit and the loss of certain assets.
  • An IVA (Individual Voluntary Arrangement) is an agreement between an individual and their creditors to repay their debts over a fixed period of time, usually five years. IVAs are typically used as an alternative to bankruptcy, as they allow individuals to keep their assets and avoid some of the more severe consequences of bankruptcy. However, they also require a certain level of disposable income and would require a individual to make regular payments over a period of time.
  • A Debt Relief Order (DRO) is a relatively new form of personal insolvency that is designed for individuals with very low levels of debt and income. A DRO allows individuals to have their unsecured debts discharged if they meet certain criteria, such as having less than £20,000 in debt, less than £50 in disposable income per month, and no assets that could be sold to repay creditors. DROs are a more affordable option than the other two, but they also have more restrictions and are only available for certain individuals.

  It’s important to note that each of these options have their own specific requirements and consequences, thus it’s highly recommended to consult with a professional before making a decision.